ASX – SELL – 11th May 2021

ASX – SELL – 11th May 2021 (Closed)

Good afternoon team,

I am currently with bad wifi so it will be difficult to update the technical analysis charts this week, I will do my best to keep you all up to date.

The US stock market faced a large decline overnight with tech stocks leading the tumble. Apple and Amazon were among the biggest detractors, down 2.6% and 3.1%, respectively. The Dow Jones briefly traded above 35,000 points but ended up falling 0.1% despite the energy sector spiking after a key US pipeline was shut down due to a cyberattack. The S&P 500 also fell 1.0%. With the decline seen in the US market, we are expecting the ASX to follow suit after reaching a major technical double top. Interestingly, the USDCAD is also approaching a major double bottom, which suggests USD strength could come into the market over the coming days (risk off).

AUS200/ASX Daily Charts

Rising wedge structure, bearish divergence and a major double top. These all suggest a bearish reversal opportunity.

ASX 1 Hour Charts

Trade Setup: SELL Market Execution, current price on Focus Markets 7076, stop loss 7176 and take profit targets 6900-6600.

Stop loss: 100 pips

Take profit: 176-476

Keep in mind pricing might vary depending on the brokerage.

Trade Setup
SELL - Market Execution

Entry
7076

Take Profit
6900-6600

Stop Loss
7176